Response from Dept of Energy and Mining (SA) re LCK progress

Hi guys,
Just wanted to share the email response from the dept of mining and energy SA that I received today, as promised. Here is the email...


As you may have ascertained from the information detailed on our web site: http://www.energymining.sa.gov.au/petroleum/projects/prj_leigh_creek_energy_isg#DPGP_monitoring the pressure and temperature monitoring data as you’ll see in the graphs on this page are demonstrating compliance with the approved Statement of Environmental Objectives (SEO) requirements. On the basis of this information and ground water and air quality data submitted, we have no evidence to indicate the current performance of the PCD is not behaving as expected or in is any way posing non-compliant behaviour.

Asyou may have also ascertained from the information on our web site, on 1February 2019, Leigh Creek Energy requested from DEM-ERD a 3-monthextension of the production period as approved under Section 27(3) of thePetroleum and Geothermal Energy Act 2000. Leigh Creek Energy outlined withintheir letterthat the Pre-Commercial Demonstration (PCD) is still in its commissioning (or“ramp up”) stage and has yet to sustain full flow rate gasification andproduction of syngas as defined in the relevant Environmental Impact Report(EIR).

LeighCreek Energy advised in its letter of 1^st February that it wasinvestigating options to progress the development of the gasifier to commencetheir operational phase and test plan regime. In response, on 6February 2019 DEM-ERD approval was granted to extend the original 3-monthproduction period for three months until 7 May 2019.

DEM-ERDmaintains that only after full, stabilised flow rate gasification is achievedwill Leigh Creek Energy be able to undertake its pre-commercial demonstration(PCD) trial to evaluate the technical and environmental feasibility of In-SituGasification (ISG) within the Telford Basin as required in the approved SEO.Once the PCD trial is successfully completed, LCE will then be required tosubmit for DEM-ERD assessment and approval an Environmental Impact Report (EIR)and SEO building on the findings of the PCD trial for the next stage ofcommercial development of this project. This process will entail the same Stage2 and 3 approvalstages as were required for the PCD phase and as described in section 2 ofour assessmentreport for the PCD SEO approval.

Withregard to the legal challenges and court hearings you have referred to in youremail, it is my understanding that these have concluded in favour of LCE.

Kind regards

Michael Malavazos (FIChemE)

Director Engineering Operations

Energy Resources Division
Department for Energy and Mining

M: 0401121 666

T +61 (8)842 92470

E[email protected]u

GPO Box 320, Adelaide, South Australia5001

Level 7, 11 Waymouth Street, Adelaide5000